Close Video

UK economy surges but Hammond warns of uncertainty ahead

27 January 2017

The UK economy once again defies post-Brexit predictions as growth reaches 0.6 percent, despite worries of future uncertainty and possible threats to the viability of the motor industry.

Growth in the UK economy reached 0.6 per cent in the final quarter of 2016, ahead of economists’ expectations and representing four years of uninterrupted growth. The data from the Office for National Statistics (ONS), which again defied predictions of a post-referendum slowdown, coincided with publication of auto industry figures showing that the number of cars produced in the UK in 2016 hit a 17-year high. Office for National Statistics: Q4 growth up, driven by the services sector

Overall growth in Q4 was driven by the all-important services sector, which accounts for more than three-quarters of the nation’s GDP. A 0.8 per cent rise in the sector was largely attributable to a 1.7 per cent expansion from the distribution, hotels and restaurant industries. Chancellor of the Exchequer Philip Hammond, on a visit to Microsoft’s UK headquarters in Reading, commented: “Every major sector of the economy grew last year, which is further evidence of the fundamental strength and resilience of the UK economy. There may be uncertainty ahead as we adjust to a new relationship with Europe, but we are ready to seize the opportunities to create a competitive economy that works for all.”

Source

Back to news